The downgrade of US government debt and the turbulence in eurozone bond markets are just the latest dramatic developments in a debt crisis that started almost exactly four years ago, but whose roots go back much further. After a decade-long debt-fuelled boom, in which Britain was perhaps the most enthusiastic participant, fears over unsustainable banking debt have grown into fears about the sustainability of sovereign debt. Here in Britain, the events of the past month are a vindication of the Coalition's decision to get ahead of the curve, and they demonstrate the reckless folly of the alternative route.
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